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Good morning. The U.S. Supreme Court this week will have a new chance to curb the regulatory powers of federal agencies. Our colleague John Kruzel dives into a pair of cases. Plus, Kirkland was drawn into the saga over a Texas bankruptcy judge; a Florida judge just struck down a law banning guns in post offices; and redesigned Apple watches won’t be subject to an import ban. On the docket, Donald Trump faces millions more in damages as he heads to trial today for a second time over defamation claims from former magazine columnist E. Jean Carroll. Let’s jump in.
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The U.S. Supreme Court this week will take up a pair of cases from commercial fishermen that will give the justices another chance to curb the regulatory powers of federal agencies, John Kruzel reports. The high court in recent years has signaled skepticism toward expansive regulatory power.
The court will hear arguments from Latham’s Roman Martinez and Paul Clement of Clement & Murphy in cases asking the justices to rein in or overturn the 1984 “Chevron deference” precedent that says judges should defer to federal agency interpretation of U.S. laws. A raft of conservative and corporate interest groups filed briefs backing the commercial fishermen.
The companies in the two cases sued the government in 2020 in federal court, claiming an industry-funded monitoring program exceeded the authority of the National Marine Fisheries Service under existing law. The D.C. Circuit and Boston-based 1st Circuit both ruled in favor of the government. DOJ Solicitor General Elizabeth Prelogar is expected to argue the cases on Wednesday.
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- Top bankruptcy law firm Kirkland was sued for allegedly profiting from an undisclosed romantic relationship between former Houston bankruptcy judge David Jones and local bankruptcy lawyer Elizabeth Freeman. Plaintiff Michael Van Deelen, whose October lawsuit led Jones to publicly acknowledge the relationship, expanded his lawsuit to add Kirkland, Freeman and her former law firm Jackson Walker.
- Attorney Joseph Tacopina said he will no longer represent former President Donald Trump in a criminal case in Manhattan related to alleged hush money payments or a separate appeal of a civil case. Tacopina withdrew from representing Trump in two of the former president’s ongoing legal battles.
- The California state bar is poised to cut the number of locations for its July bar exam in a bid to reduce costs. State bar trustees are due on Thursday to vote on a plan that would reduce the number of large testing sites to four or five, compared with seven last year.
- Judge Ilana Rovner, the first woman to serve on the 7th Circuit, is taking senior status, opening up a vacancy on the Chicago-based appeals court. Rovner was appointed by George H.W. Bush.
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That’s the amount that cryptocurrency firm Genesis Global Trading will pay after a New York Department of Financial Services investigation found significant failings in the company’s anti-money laundering and cybersecurity programs. Under the settlement, Genesis will also surrender its “BitLicense,” which New York requires crypto companies to obtain in order to offer certain services within the state. It has held a BitLicense since 2018.
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“A sentence of death is justified.”
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- Jury selection is scheduled to begin in Manhattan federal court as a second civil trial gets underway over claims that Donald Trump sexually abused former magazine columnist E. Jean Carroll decades ago. A jury in May ordered Trump to pay Carroll $5 million, finding that Trump sexually abused Carroll in a Bergdorf Goodman department store dressing room in Manhattan in the mid-1990s, and defamed her by denying it in 2022. At the second trial, the jury must determine how much in additional damages Trump should pay for having defamed Carroll in a similar denial in 2019. Trump has claimed he had not known Carroll.
- On Wednesday, a 3rd Circuit panel will consider whether to revive claims against TikTok by a mother whose 10-year-old daughter died attempting a viral stunt on the social media platform called the “blackout challenge.” A trial judge dismissed the case against TikTok. The appeals court will consider whether Section 230 of the Communications Decency Act should shield TikTok and similar companies from any liability. Mayer Brown’s Andrew Pincus will argue for TikTok and face off against Jeffrey Goodman of Saltz Mongeluzzi & Bendesky.
- Also on Wednesday, U.S. District Judge Katherine Polk Failla in Manhattan will hear arguments in the SEC’s case accusing crypto platform Coinbase of making billions of dollars on transactions while evading disclosure requirements that are meant to protect investors. Coinbase general counsel Paul Grewal has said the company “demonstrated commitment to compliance.”
- On Thursday, the first of 28 accused customers of a high-end brothel network that operated out of apartment complexes in greater Boston and northern Virginia and catered to “wealthy and well-connected clientele” are scheduled to appear in Massachusetts court. Federal prosecutors in November charged three people who they said operated a brothel network with customers who included elected officials, tech and pharmaceutical executives, lawyers, professors and military officers.
- On Friday, lawyers for cryptocurrency exchange Binance will urge a D.C. federal judge to dismiss the SEC’s fraud case. The SEC in June sued Binance, its then-CEO Changpeng Zhao and the operator of its purportedly independent U.S. exchange for allegedly operating a “web of deception.” The case is before U.S. District Judge Amy Berman Jackson.
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Court calendars are subject to last-minute docket changes.
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- The U.S. Supreme Court said it will hear a challenge by Starbucks to a judicial decision that required the coffee chain to rehire seven employees at one of its cafes in Memphis who a federal agency determined were fired for supporting unionization.
- Three Republican-led states can join in a lawsuit seeking to restrict the availability of the abortion pill mifepristone, U.S. District Judge Matthew Kacsmaryk in Amarillo said. Kacsmaryk rejected the FDA’s argument that the states had waited too long to intervene in the case. The court’s ruling threatened to complicate a closely watched case the U.S. Supreme Court has already agreed to review.
- The National Football League must face a multibillion-dollar trial in February over the distribution of its exclusive “Sunday Ticket” telecast package of games, after a U.S. judge on Thursday declined to throw out the class-action case. Los Angeles-based U.S. District Judge Philip Gutierrez ruled that a nationwide class of residential and commercial Sunday Ticket subscribers can move ahead with claims that the NFL long has curbed competition for the sale of game telecasts.
- Grubhub will pay more than $3.5 million to resolve a lawsuit by Massachusetts’ attorney general accusing the company of illegally charging restaurants that used its online food delivery platform excessive fees during the COVID-19 pandemic. Grubhub, represented by Gibson Dunn, said in a statement that while it believed it complied with a price cap the state had imposed, it was “ready to move forward.”
- The D.C. Circuit in a 2-1 ruling upheld the NLRB’s conclusion that an employer-sponsored group of T-Mobile call center workers was an unlawful labor organization dominated by the company.
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